5 Ways Small Businesses Can Reduce Their Overhead Costs

Have you heard the saying, “It takes money to make money?” It means that there are things you have to invest in for your business, from office space to technology. For a small business with razor-thin margins, there may not be much money to invest. Often, it can take a few years before a small business is even able to turn a profit.

While this sounds bleak at face value, there may be things that your small business is spending money on that could go back into your pocket. Reduce overhead costs with these 5 money-saving tips:

Start by evaluating your office space needs

In most cases, your storefront is probably making up the bulk of your expenses every month. Keep an eye out for better, cheaper space, especially if you’re currently working in more space than you need. If you’re concerned about going too small, look at your staffing. Are there people who could work from home? Do you have an abundance of unnecessary stuff that makes the office feel homier, but isn’t critical to your success? Weigh the pros and cons of reducing your rental costs vs. maintaining the current status quo.

Get rid of your landline

Unless you have a very specific reason for having one, it’s eating into your profits. Between VOIP services, which establish a phone line through your pre-existing networking service, and phone apps that allow you to partition off your phone into a “work” number and a “personal” number, there’s no reason to keep this waste of profits around.

Investigate sources before buying wholesale

Prices constantly fluctuate as wholesale companies attempt to compete with one another. Don’t get too comfortable ordering through just one supplier. Jump around as costs adjust. Sticking with an automatic monthly shipment may be easier, but shopping around is cheaper.

Advertise creatively online

Who are you trying to target with your small business? If the answer is locals, then you’re in a great position to advertise through Facebook, Instagram, and even Snapchat. Unless you’re attempting to target demographics outside of your service zone, there’s really no reason to spend money on ads that go beyond that. One of the most popular ads recently was a homemade, low budget spoof for an animal shelter in Atlanta, Georgia. Their video was shared on Facebook by nearly 500,000 people. Let your creativity and personality do the talking, and save money on marketing at the same time.

Use open-source software alternatives

Seek out legal, free alternatives to expensive programs. These often have the same power and features as big-brand software, without the big-brand “tax.” Open-source software also allows you to edit your own copy, inserting code and creating features that help adapt it to your needs.

Small businesses can reduce their overhead costs by maintaining the same creativity and innovation that helped them open their business in the first place. Keep an eye out for new opportunities to invest back in yourself with cost-cutting measures.